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3 Ways to Invest Your Retirement Money | CA Rachana Ranade

Well today, I am going to tell you a story, 
a story of an ant and a grasshopper. When it   was a nice sunny day, the grasshopper was 
merrily singing certain nice tunes and he   was enjoying the weather while, on the other 
side the ants were very busy gathering food   so that they don't have to face a problem 
on a rainy day. Then what happened that,   the rain started and when the rains were 
pouring heavily, the ants were enjoying the food   in their own small home. Poor grasshopper, what 
might have happened to him? You want to see that,   the grasshopper is also merrily enjoying food,   because he's not the grasshopper of that original 
story, he's the next gen grasshopper, he knows   how to plan for his future, maybe he's seen my 
lectures and that's why he's a smart grasshopper.   Hey folks, CA Rachana Ranade here and I welcome 
you all to a brand new video which is about   how to park your retirement corpus.

I am sure 
that grasshopper hasn't still left your mind,   you might be wondering how did he get that 
food, so it's all about proper planning,   proper goal setting and if you're still 
not aware about how to set smart goals,   just have a look at this lecture whenever time 
permits and I am sure that that grasshopper   might be very very keen on learning, he might 
have set his retirement goal very nicely,   that's why he was able to enjoy the summer 
as well as the post retirement phase. Well now, it's time to press the reset button, 
why? Because you were in the accumulation phase   of your life till now but, right now we're 
assuming that you have already reached that   retirement phase and now, you're going to go into 
the decumulation phase. You might be wondering,   what is this? So this video, to be very honest, is 
not targeted for people who are in 20s or in their   30s, this is more targeted towards people who 
are at their retirement age of let's say 60 years   or even if you are 30 years, maybe, you can 
definitely watch this video for your parents   right, because they are going to be the ones who 
might receive a lump sum amount at retirement   and then they might get confused as to how can I 
park these funds so that I can decumulate them, so   that I can utilize them, withdraw them very nicely 
and lead a very comfortable life post retirement.   So just to give you one more quick clarification, 
accumulation phase happens when you are working,   whenever you are keeping that small part of 
your income so that you can easily retire early,   retire rich and now once you have 
reached this retirement phase,   now it's all about withdrawing your 
investments and leading a peaceful life.

Many times people ask me on WhatsApp or through 
emails that Rachana, we have received an x amount   as a lump sum retirement amount, now where 
should we invest this. If you really ask me,   there's no single answer for that, I will give you 
an example for this as well. Assume that there are   three friends a, b and c. Almost 25, 30 years ago, 
all had decided that when we retire, we should   have a retirement corpus of one crore rupees and 
today all of these three people have retired.   Budgeted amount was how much, target amount 
was one crore but, let's understand actually   what have they achieved, Mr. A saved only 30 
lakh rupees so I can say today his investment   corpus is just 30 lakh rupees, for b it is 90 lakh 
rupees, 90 lakhs is very close to the target and c   has managed to invest two crore rupees for his 
retirement. Now you only tell me one thing,   can I give them one single strategy or 
the strategies have to be different?   Answer is, the strategies have to 
be different but what will be the   strategies is exactly what we are going 
to discuss in the next part of the video.   So now let's understand all these three cases one 
by one.

The very first one, if you remember is of   Mr. A, whose target saving for retirement was 
one crore but he actually ended up only with 30   lakh rupees. Now what do you think, out of these 
three strategies, what should be his focus on,   should it be on income generation, on corpus 
protection or on corpus growth? Ideally, it should   be mainly on income generation and of course 
on corpus protection. He can't take the risk to   grow his corpus by putting his corpus in risky 
instruments like equity post retirement right.   So what are few solutions for Mr.

A, solution 
number one, unfortunately he will still have to   make a point to earn additional income, now how, 
if he is a skilled person, he might still give   some certain consultancy services and earn money 
Possibility number two if that's not, I mean if   that's not doable, maybe if he's staying in his 
own house, he can sub rent a part of his house,   so let's say he can have a paying guest to whom 
he can just give like one bedroom of his house,   something like an Airbnb model, can be operated 
by him as well right.

One more possibility is   that if he is able to cut down luxury to 
almost zero percent levels, then he will be   able to survive through his retirement and one 
last point which he will have to do is that,   even if he's spending on essentials, he will have 
to spend on the essentials very very tightly. So   I hope all the young viewers out there, they 
might have understood that come what may,   I don't want to be Mr.A post retirement. Now let's 
go to the case of Mr. B, his targeted saving for   retirement were one crore rupees and how much did 
he end up saving, he ended up saving 90 lakhs,   almost hitting the target right. What should be 
his focus on? His focus should be on number one   corpus protection, because he's almost there. 
Now, he doesn't want to lose the corpus but,   simultaneously he also wants to generate certain 
income. So for that what will he have to do,   number one, he should ensure as I mentioned that 
his capital is not eroded, so, for that can he   invest in equity, direct equity? No. He has to 
ensure that capital is not eroded number one.   Number two, can he still afford a slight amount 
of luxury, why not slight amount of luxury is   affordable because he's very close to his target 
and number three, what he can do is that he can   invest a part of his funds in something like 
a conservative fund wherein, 75 to 80 percent   exposure is given to debt and a very minor 
portion is it is actually allocated to equity,   so I can say that corpus growth can be a very 
very slight point which may be considered but,   again I am repeating, major focus on what, major 
focus on corpus protection and income generation.   Let's move on to case number c.

For case number 
c, he's at the most amazing position because his   target saving was one crore he has ended up saving 
to crore. Does he have to really bother about   something right now, no. Can he actually live 
his retirement life in luxury, absolutely yes.   Can he invest in equity as well, this person, 
yes, why not, because for him capital protection   is not very a big running crisis, he also has 
surplus corpus. So he can risk out some of his   money in equity. Now whether in direct equity or 
in equity mutual funds depends on his knowledge   right. So after understanding all these 
points, I hope you have understood that Mr.

C   has two further possibilities, possibility number 
one if he lives to the age where he had predicted,   let's say he had predicted that he lived 
to 70 and if he lives only till that age,   he will be able to keep some corpus even 
for his nominees, for his legal heirs.   If he outlives his expectation so for example he 
had planned that he will die at 70 as an example   and he lives till 80, still will he have 
the corpus to live that additional 10 years,   yes, because he has that additional quotient.

So 
all those youngsters out here watching the video,   I hope you understood that you surely love if you 
are Mr. C while you are at your retirement age.   Well before we move ahead to understanding the 
various investment options available, we have   to understand two prerequisites, which are these 
two, number one, even if you are in the retirement   phase, very very very important is the emergency 
fund. Now what is emergency fund, it's something   like you should have almost three to six months 
of your expenses very easily available with,   you it could be in your savings account, it could 
be in your FD, okay it could be in liquid fund but   it should be very much easily accessible. If 
you want to know more about emergency funds,   I have already made a video on that you can check 
it out later. Number two, very very important,   you should have a health insurance because as and 
how you grow more in age, chances that you might   face illness, you might face hospitalization 
or a shade higher so, you must have a proper   health insurance.

If you want to know more about 
health insurance again I have made a separate   video on that, I have recently released this on 
the channel. So be sure that you have knowledge   about both these two points and then only move on 
to understanding the various investment options. Emergency funds ticked off, health insurance 
ticked off, I am not saying tic toc, ticked   off okay.

Now with this let's move on to the 
government schemes and we are going to focus on   three schemes. The very first one is SCSS, senior 
citizen saving scheme. The second one is PMVVY   which is the Pradhan Mantri Yaya Vandana Yojana 
and the last one is POMIS which is post office   monthly income scheme. Well to be very honest, the 
first two are absolutely retirement focus schemes,   the third one can be opened even by people who 
have not attained the age of 60. So for example,   if I want to open a POMIS, I can, I can also open 
it in the name of a minor as well okay, but, then   why are we discussing it here, because it offers 
a benefit of a monthly income scheme, that's the   reason why I am discussing it in this section 
right. So let's understand all these three one   by one. Where can you open an account under SCSS, 
it can be opened up with any authorized bank or a   post office, for PMVVY it is solely operated by 
LIC. So if you want to open an account, you have   to approach an LIC agent or you can go directly 
to the LIC office.

For a monthly income scheme,   you have to open it with a post office I mean, you 
have to go to a post office and open an account.   Eligibility for SCSS, ideal eligibility is 60 
years but with certain uh conditions so for   example, if you have taken a early VRS, a special 
VRS, then age limit is taken down to 55. If you   are a defense personnel, the age limit is taken 
further down to 50 right, for PMVVY, it's a flat   age of 60 years and for POMIS as I mentioned, 
there is no age limit even a person of 20 years,   30 years, 40 years, 60 years also can open 
this account right. The next one is about term   tenure, for SCSS it is five years and it can be 
extended to further three years for VVY, it is   ten years and for POMIS, it is five years. How 
much are the interest rates? For the first two,   interest rates are seven point four percent 
for the quarter one of 21, 22.

So what does   this mean? Can the government change these 
interest rates periodically, unfortunately,   answer is yes. Can they do a downward revision, 
yes, can also they do an upward revision, yes   okay, but, recent past may they have been in 
a downward trend okay but, still I can say   that seven point four percent right now is not 
bad at all, okay. When you get paid out is the   big question now, if you're talking about SCSS, 
you get paid out quarterly, for VVY, you get, you   have an option you can choose monthly, quarterly, 
half yearly, yearly whatever and for POMIS,   as it's a monthly income scheme, it will be paid 
out on a monthly basis.

Minimum deposit, maximum   deposit is very well mentioned in this table you 
can see here, minimum is 1000 and its multiples   maximum is 15 lakhs. For VVY, 1.5 lakhs for a 
yearly pension and 15 lakhs for a monthly pension,   for post office MIS, it's thousand and it's and 
it's multiples and for maximum amounts it is 4.5   lakhs if it's a single account and 9 lakh if it's 
a joint account. There are certain clauses about   withdrawal and penalty as well, if you want you 
can just press the pause button, read out the   penalty and withdrawal clauses and then again play 
okay. So it's nothing like to be taught as such.   For taxation, for SCSS, PMVVY both are eligible 
under ATC, for POMIS it's not eligible under ATC.   If you check out, for all these three schemes, the 
aim is common and what is the aim, aim is income   generation and corpus protection.

Is there 100% 
corpus protection, yes, because all three schemes   are somewhere related directly to post office or 
to the government, so it's as good as saying that   government defaulted ,very rare scenario right. So 
in this case, I can say that corpus protection is   absolutely guaranteed, so go back again to case a, 
b and c. To whom is this absolutely suitable for,   it is absolutely suitable for the case a 
category.

Can case b, can Mr. B also invest   some part in this, absolutely yes, why not. A 
little less as compared to A and for c this,   can be a comparatively lower amount which 
can be invested in these three schemes. So I hope you have understood very well about 
the government schemes. Now let's move on to   investing in mutual funds. Ff you remember, I 
told you that depending on the risk appetite,   one can choose whether he should go for a debt 
fund or to a balanced fund, in that also we talked   about a conservative fund, you remember when I 
said 75 to 80 percent exposure will go to debt   ,only that balance small small portion to equity 
and the third one can be actually investing in   equity oriented funds but, that was for whom a? 
b? for c, because he had a lot of surplus corpus   as well right.

So let's understand one by one if 
I am talking again about Mr. A. is this option   available for him, none, neither debt, nor equity. 
Ideally, you should go ahead with a very safe   government scheme point only right. If I am 
talking about b, can b invest a part of his   corpus in debt funds, answer is yes, why not, he 
can do that. Now if he is interested in income   generation, what he can do is invest in debt 
fund and then go ahead with an SWP, what is SWP,   systematic withdrawal plan.

So like in SIP you 
transfer x amount monthly to that investment   that is mutual fund right, instead of investing 
monthly, here you withdraw monthly that is known   as a systematic withdrawal plan okay. So what is 
step number one, invest one chunk in debt fund   at one shot and keep on withdrawing part by part 
every month, that will give you a steady flow of   income per month right.

Possibility number two, 
if you want to go ahead with investing in equity,   now invest in equity was for whom ,ideally for 
Mr. C so now, let's understand how c will plan   his investment in equity mutual funds. Is he 
going to directly invest in equity mutual fund,   no understand how he would do it. So assume 
whatever chunk he has decided, first the entire   chunk will go in a debt mutual fund right and from 
the debt mutual fund, money will be systematically   transferred to the equity oriented mutual fund. 
So this is not called as an SWP, it is called   as an STP that is nothing but a systematic 
transfer plan.

So what will happen in this,   it is as good as an SIP only, but SIP is when? 
When you pay out of your own pocket every month,   in STP what happens, money has already gone out 
from your pocket you know it's there in the debt   fund, it's parked in the debt fund. Now money 
is only being transferred from a debt fund to   an equity fund. I hope you have understood what is 
a debt fund, who should invest in a debt fund. If   you remember we also talked about a conservative 
fund, a hybrid fund, we did talk about investing   in equity oriented mutual fund that was mainly for 
Mr. C, we also talked about SIP, SWP, STP wow, but   wait, still one big question remains how to choose 
which mutual fund, for that, I have a separate   course on magic of mutual funds so you can surely 
think about investing in this course, you'll get a   lot of knowledge about how to choose a mutual fund 
and so that you can invest with full confidence.

Let's move on with our last investment 
avenue, which is investing in equity,   my favorite one right. But then, is it 
applicable for Mr. A, no, b, no, for c,   yes. But then, how? Can you invest directly in 
equity ,that depends on whether that person has   that much knowledge on equity or not. If he does 
not have knowledge, he can acquire that as well.   I will definitely like to share a very nice 
experience which I had. So whoever enrolls for   my courses on various like basics of stock market, 
fundamental analysis, technical analysis whatever,   I do conduct a zoom meeting sessions every 
month with all these participants. There is   one participant named Shashi and she is I guess 
60 plus years. She has been a scientist, has zero   commerce background but then, post retirement she 
said, I would love to learn about stock markets.   She has learned a lot about stock market, she 
keeps on asking me questions every month and I   am so happy to answer her questions. That's how it 
shows that there is no age barrier for learning,   so if you still believe that you have that 
enthusiasm for learning, age is just a number,   right.

So, what you can do if you have that 
knowledge in stock market ,you can invest,   if you don't have, acquire the knowledge first and 
then invest in stock market but again coming back   to our case study, this one is not applicable for 
a, b it's applicable only for c. Next option can   be investing in Nifty bees. So if you don't know 
what are bees, what are Nifty bees, I have already   made a separate video on that. I have talked 
about various types of bees like gold bees,   Nifty bees, bank bees, in that video you will 
get a detailed input on what are nifty bees. You might stop working, but, your 
money might not stop working,   If, you have parked it efficiently.

I hope 
you have enjoyed this video. If you have,   don't forget to share it with your friends 
till then take care, Jai Hind and bye bye..

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Retirement Planning Home

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When can I retire? | How much Retirement Corpus is enough?

Hello friends welcome to
yadnya investment academy. Today is friday. So today we will talk about
a financial planning topic. Today's topic is Related to retirement planning A very common question of you all that come Obviously this all knows. Retirement is a very important goal. If we talk about financial goals. Mostly it should be. Mostly when i do financial planning So many persons financial
planning i have done personally Then in that comes. Retirement is a very important goal. In which we need a lot of money Nowadays early retirement is occurring. FIRE environment talks are occurring. Financial free retire early In such things When retirement comes in goal One important thing comes How much money do I need? Tell me this much money is enough. Then I can retire. That is a normal question. For this we have already
developed an interesting calculator but that was before pay wall. Now we have removed that from pay wall because it is very useful calculator. So a retirement calculator we have made. In that with so many
permutations combinations We can get an idea This much retire corps I need.

If I reach here then I have done well. I am at least financially free. Now I have to retire. We have to work further or not. Then it is my decision. If above that. Now I am just sharing my screen. Now you will see here You will go on investyadnya website There is a section named
tracker and calculator. In this there is a retirement calculator. Open this Now here we have to fill information. Suppose i am putting age of 30. You have to retire suppose on 60. Suppose we took an
example i have to retire on 60. Life expectancy we mostly suggest We should keep 90, 95, 100. With a conservative estimate If you keep 100 then it is very
good conservative estimate.

If you want to take optimistic If you took practical then it should be 90. Suppose i am putting here 95. Fourth information is our Current annual expense When we do retirement calculation Obvious we took assumptions. One assumption is this the
expense i am doing today Suppose when i retire Then also my expenses should be like this. Means my lifestyle of now remain maintained Neither i increase nor decrease. Suppose I am spending 50k per month today. The expenses that are occurring. After retirement I will do the same expenses. After retirement expenses can reduce. It can be your house if
you are living now on rent. It can be so much rental expense. That can reduce. Now your children's expenses are so much. They will reduce at that time. Sometimes after retirement
expenses increase. Like vacation expenses mostly increases. Sometimes medical expenses increase. Some expenses have increased. Mostly as an advisor If we took a general advice then we say.

Keep the same expenses as they are now. Don't do much changes in that. Some increases some decreases. For example if we want
to do a simple calculation Then considering to current expenses Suppose my expense is 50,000 The profile we are taking has
expnses of 50,000 per month. Then it is 6 lakh rupees per year. You have to put today's expenses. You don't have to put off retirement age. That's all it will insert. Inflation number How much inflation number we have to take? 7% inflation is mostly suggested by India. If you want to be conservative
then you can take 8%. If you want to be aggressive
then you can take 5-6%. Inflation you should calculate by your own. Every year how my expenses are increasing? If you know little bit idea about that These things are increasing
according to my expenses. Edcuation expenses children's fees It increases almost 8-10% every year. Rentals mostly 10%. Landlords mostly increases rent by 10%. My personal inflation is 8, 9-10%. You take according to your. So for calculation here
I am taking 7% inflation.

Then return on investment. On the basis of return on investment. How much is my return on investment? Before retirement and after retirement. Now I am retiring at 60. At 30 I am starting investing. How much should I invest for that? How much retirement corpus I will get? The reason I am investing now. On that how much return should I expect? It depends where you are investing. If you feel I will invest
mostly in equity markets. Retirement oriented because it is very long horizon. I am of 30 years and retiring at 60 years. Horizon is of 30 years. All that I am investing I will invest mostly on equity. Then we can take 11-12%
return on investment All that we will invest now. Or we kept in equity we can take that. If you feel This house is my retirement corpus This will increase according to that. Then on real estate the return
on expectations that remains. Basically there is round inflation of 7-8%. It depends on you if you have EPFO. That is a very big retirement corpus On EPF we get around 8%. According to that you have invested here.

Overall that you are investing Or you are planning This is for retirement
and I am going to invest. What are expected returns on that? Till 60. Pre retirement is retirement on investment. Suppose it is 12%. Whole the money I will put in equity. Then you took 12% return. Then post retirement my corpse will become. How much will it grow? Suppose I retire and I get corpus of 5 crores. Then 5 crore rupees Where will I invest? Again very difficult question If you are of 30 years then in 60 years.

This is very difficult. This is a very big assumption. We have to think that mostly at 60 our risk profile decreases. We will not take much equity allocation. Suppose now we have 60-70 equity allocation That time it becomes 20-30% or 40%. I go a little bit on conservative. I say to most of the people Take percentage equal to inflation I get return same as inflation. If I want to take. Then 0.5-1% extra. We took here 8%. Means 8% of post retirement. My corpus will grow 8% after that. Inflation will remain 7%. This is planning according to that. We will discuss these points later. Therefore I am doing all these zero. We inserted these things. What we say? Our retirement age, life expectancy. Our annual expense, inflation. These all are our compulsory fields. If i sumbit this now. Sorry some value needs to be inserted.

Randomly value we are inserting. So that it can work. If i sumbit this now. Then I need retirement
corpus of 14.6 crores. If you are of 30 years and you have to do expense of 50k per month. At today's value Today's 50k offcourse will not remain same at the time of retirement. They will increase with inflation. If you have to maintain today lifestyle The 50k expenses you are doing today Same you want to do at 60. After 30 years. This is the value after 30 years. Don't be so afraid. Today 14.5 crore is very much. After 30 years the value of 14.5 That should be arounf 70-80 lakh or 1 crore I am doing guess work. It will not be more than that. Think if I have 1 crore rupees today then I will be able to do for next 35 years. 60-95 years means 35 years 35k per month That to inflation to adjust it. I will get it consistently till 95 in 95 it will become zero. If i invest lumpsum then i can invest 50 lakhs.

Considering I don't have anything. If I have 50 lakh rupees I will invest it. For 30 years they will grow by 12%. Expected pre-retirement. Then also my retirement money will be done. Monthly Sip that I have to do That is around 50,000 in this. 48,000 rupees sip i need in this. What is the meaning of step up? I will tell this in next. If you have plan in 30 years 60 years. I have to do all these things. Then you have to do monthly sip of 48,000. To retire for next 30 years. Remember this is a monthly sip. It will not increase. Every year you have to do 48k consistently. Obviously our salary will increase in years Inflation increases salary increases. Now 48,000 will seem so big But after 3-5 years You will not feel big amount. That's what I am saying. In that our step up point comes. Now you will say I don't have 48,000 to invest. It is a very big amount. From where 48,000 will come. If we are spending 50,000 Then by saving 50,000 we
can invest in retirement corpus.

That is not possible. Then in that our second comes step up sip What is the meaning of step up sip? What is annual increase in our income? Can we increase sip every year? I cannot invest 48,000 now but from next year i can increase. If you think My annual increase in income. If inflation is of 7%. With 7% income should increase If we take seven With 7% it is increasing. We considered 7% inflation. Salary is also increasing by 7%. In worst case salary is not changing. With 7% there is increase in salary. Existing investment Do you have any investment now? That you think this is my retirement income From that also it will reduce. Suppose if you have EPFO ​​corpus Suppose of 5 lakh rupees. 5 lakh rupees i inserted here. This is my EPFO ​​of 5 lakh rupees.

I will use it for retirement. On that how much return I will get on EPFO? Return are 8% Then we consider we will get 8%. It is tax free means you will get 8% Suppose i have 5 lakh rupees On that i will get 8% more. Now let's do calculation again. Now since EPFO ​​arrived. From 48 it became 46. Retirement corpus remained same. So now we have to do Sip of 46,000. We can do step up sip of 24,000. We invested 24,000 rupees this month. Every year we increase that by 7%. From annual increase in income we have to do this annual increase in sip. Today you started sip of 24,300. Next year increased 7% on that. Then again in next year increase 7% on that Compounding 7%. Increase 7% every year Till the age of 60. Then also your goal will be achieved. Then you will have 14.6 crores rupees. Considering these were our rates of returns So it is very very good. You can apply so much
permutations and combinations on this. I have little more money than 24,000. I can do upto 35,000. Can I retire early? Then can I retire at 58? On 58 it will happen at 29,000.

I have 35,000. Can I retire at 55? Now your interesting calculation will start No you need 37,000 For retirement at 55. Early retirement you can take at 37,000. If i do 37,000 per year. I invest in such investments
that give me 12% every year. 7% increase i put minimum. If you think 7% increase is less. Consider growth of salary minimum 8-10%. Why not? Consider 10%. Then in Rs 28,000 you can retire at 55. Retirement corpus also reduced. As early you retire that much less corpus you will want. Value of money comes less. At that time its value will be more. At the age of 55 we need 11.6 crores. How much lump sum funding we need? How much monthly sip
and stepup sip we need? I considered 10% annual increase. Like this If you can do so many
permutations and combinations. You can plan yourself. When can I become financially free? I think this is very interesting calculator If you like as i am a conservative investor I am not taking 12% from whole equity. Suppose we take 9%. This we keep 10. The rate of return become 9% from 12%.

Obviously both the sip's will increase. You can do calculation according to that. Which type of investor is I am? If you think here is also 9
then it will change again. These things you can do so many permutations and combinations
based on your profile. You will get so much support and understand If I invest this much money For this much time Then I can go towards a better retirement. This is how you should work on these things. You can plan early retirement. You want to spend so much or not. 50,000 will not be sufficient. I want to increase my lifestyle. Now I am spending 50,000. But at that time I want to spend 75,000. Acc to that by using
permutation and combination What are my savings now? I can plan such investments or not. Then in those things you will get
so much help from these calculator..

Do check that on our website. If you have any comment If there are complications
then visit our website. Below is our email address and
whats app number is given. All things are written below. You can email us there
if you have any query. Below there is comment section also. Must write in comment section. Hit a like if you liked the video. If you think some knowledge is added Then hit a like Have a great time ahead friends Jai Hind

As found on YouTube

Retirement Planning Home

Read More

When can I retire? | How much Retirement Corpus is enough?

Hello friends welcome to
yadnya investment academy. Today is friday. So today we will talk about
a financial planning topic. Today's topic is Related to retirement planning A very common question of you all that come Obviously this all knows. Retirement is a very important goal. If we talk about financial goals. Mostly it should be. Mostly when i do financial planning So many persons financial
planning i have done personally Then in that comes. Retirement is a very important goal.

In which we need a lot of money Nowadays early retirement is occurring. FIRE environment talks are occurring. Financial free retire early In such things When retirement comes in goal One important thing comes How much money do I need? Tell me this much money is enough. Then I can retire. That is a normal question. For this we have already
developed an interesting calculator but that was before pay wall. Now we have removed that from pay wall because it is very useful calculator. So a retirement calculator we have made. In that with so many
permutations combinations We can get an idea This much retire corps I need. If I reach here then I have done well. I am at least financially free. Now I have to retire. We have to work further or not.

Then it is my decision. If above that. Now I am just sharing my screen. Now you will see here You will go on investyadnya website There is a section named
tracker and calculator. In this there is a retirement calculator. Open this Now here we have to fill information. Suppose i am putting age of 30. You have to retire suppose on 60. Suppose we took an
example i have to retire on 60. Life expectancy we mostly suggest We should keep 90, 95, 100. With a conservative estimate If you keep 100 then it is very
good conservative estimate. If you want to take optimistic If you took practical then it should be 90. Suppose i am putting here 95. Fourth information is our Current annual expense When we do retirement calculation Obvious we took assumptions. One assumption is this the
expense i am doing today Suppose when i retire Then also my expenses should be like this. Means my lifestyle of now remain maintained Neither i increase nor decrease.

Suppose I am spending 50k per month today. The expenses that are occurring. After retirement I will do the same expenses. After retirement expenses can reduce. It can be your house if
you are living now on rent. It can be so much rental expense. That can reduce. Now your children's expenses are so much. They will reduce at that time. Sometimes after retirement
expenses increase. Like vacation expenses mostly increases.

Sometimes medical expenses increase. Some expenses have increased. Mostly as an advisor If we took a general advice then we say. Keep the same expenses as they are now. Don't do much changes in that. Some increases some decreases. For example if we want
to do a simple calculation Then considering to current expenses Suppose my expense is 50,000 The profile we are taking has
expenses of 50,000 per month. Then it is 6 lakh rupees per year. You have to put today's expenses. You don't have to put off retirement age. That's all it will insert. Inflation number How much inflation number we have to take? 7% inflation is mostly suggested by India.

If you want to be conservative
then you can take 8%. If you want to be aggressive
then you can take 5-6%. Inflation you should calculate by your own. Every year how my expenses are increasing? If you know little bit idea about that These things are increasing
according to my expenses. Edcuation expenses children's fees It increases almost 8-10% every year. Rentals mostly 10%. Landlords mostly increases rent by 10%. My personal inflation is 8, 9-10%. You take according to your. So for calculation here
I am taking 7% inflation. Then return on investment. On the basis of return on investment. How much is my return on investment? Before retirement and after retirement. Now I am retiring at 60. At 30 I am starting investing. How much should I invest for that? How much retirement corpus I will get? The reason I am investing now.

On that how much return should I expect? It depends where you are investing. If you feel I will invest
mostly in equity markets. Retirement oriented because it is very long horizon. I am of 30 years and retiring at 60 years. Horizon is of 30 years. All that I am investing I will invest mostly on equity. Then we can take 11-12%
return on investment All that we will invest now. Or we kept in equity we can take that. If you feel This house is my retirement corpus This will increase according to that. Then on real estate the return
on expectations that remains. Basically there is round inflation of 7-8%. It depends on you if you have EPFO. That is a very big retirement corpus On EPF we get around 8%. According to that you have invested here. Overall that you are investing Or you are planning This is for retirement
and I am going to invest.

What are expected returns on that? Till 60. Pre retirement is retirement on investment. Suppose it is 12%. Whole the money I will put in equity. Then you took 12% return. Then post retirement my corpse will become. How much will it grow? Suppose I retire and I get corpus of 5 crores. Then 5 crore rupees Where will I invest? Again very difficult question If you are of 30 years then in 60 years.

This is very difficult. This is a very big assumption. We have to think mostly at 60 our risk profile decreases. We will not take much equity allocation. Suppose now we have 60-70 equity allocation That time it becomes 20-30% or 40%. I go a little bit on conservative. I say to most of the people Take percentage equal to inflation I get return same as inflation. If I want to take. Then 0.5-1% extra. We took here 8%. Means 8% of post retirement. My corpus will grow 8% after that. Inflation will remain 7%. This is planning according to that. We will discuss these points later. Therefore I am doing all these zero. We inserted these things. What we say? Our retirement age, life expectancy. Our annual expense, inflation. These all are our compulsory fields. If I consider this now.

Sorry some value needs to be inserted. Randomly value we are inserting. So that it can work. If I consider this now. Then I need retirement
corpus of 14.6 crores. If you are of 30 years and you have to do expense of 50k per month. At today's value Today's 50k offcourse will not remain same at the time of retirement. They will increase with inflation. If you have to maintain today lifestyle The 50k expenses you are doing today Same you want to do at 60. After 30 years. This is the value after 30 years. Don't be so afraid. Today 14.5 crore is very much. After 30 years the value of 14.5 That should be arounf 70-80 lakh or 1 crore I am doing guess work. It will not be more than that. Think if I have 1 crore rupees today then I will be able to do for next 35 years. 60-95 years means 35 years 35k per month That to inflation to adjust it.

I will get it consistently till 95 in 95 it will become zero. If i invest lumpsum then i can invest 50 lakhs. Considering I don't have anything. If I have 50 lakh rupees I will invest it. For 30 years they will grow by 12%. Expected pre-retirement. Then also my retirement money will be done. Monthly Sip that I have to do That is around 50,000 in this. 48,000 rupees sip i need in this. What is the meaning of step up? I will tell this in next. If you have plan in 30 years 60 years. I have to do all these things. Then you have to do monthly sip of 48,000. To retire for next 30 years. Remember this is a monthly sip. It will not increase. Every year you have to do 48k consistently.

Obviously our salary will increase in years Inflation increases salary increases. Now 48,000 will seem so big But after 3-5 years You will not feel big amount. That's what I am saying. In that our step up point comes. Now you will say I don't have 48,000 to invest. It is a very big amount. From where 48,000 will come. If we are spending 50,000 Then by saving 50,000 we
can invest in retirement corpus. That is not possible. Then in that our second comes step up sip What is the meaning of step up sip? What is annual increase in our income? Can we increase sip every year? I cannot invest 48,000 now but from next year i can increase. If you think my annual increase in income. If inflation is of 7%. With 7% income should increase If we take seven With 7% it is increasing. We considered 7% inflation. Salary is also increasing by 7%. In worst case salary is not changing. With 7% there is increase in salary. Existing investment Do you have any investment now? That you think this is my retirement income From that also it will reduce.

Suppose if you have EPFO ​​corpus Suppose of 5 lakh rupees. 5 lakh rupees i inserted here. This is my EPFO ​​of 5 lakh rupees. I will use it for retirement. On that how much return I will get on EPFO? Return are 8% Then we consider we will get 8%. It is tax free means you will get 8% Suppose i have 5 lakh rupees On that i will get 8% more.

Now let's do calculation again. Now since EPFO ​​arrived. From 48 it became 46. Retirement corpus remained same. So now we have to do Sip of 46,000. We can do step up sip of 24,000. We invested 24,000 rupees this month. Every year we increase that by 7%. From annual increase in income we have to do this annual increase in sip. Today you started sip of 24,300. Next year increased 7% on that. Then again in next year increase 7% on that Compounding 7%. Increase 7% every year Till the age of 60. Then also your goal will be achieved. Then you will have 14.6 crores rupees. Considering these were our rates of returns So it is very very good. You can apply so much
permutations and combinations on this. I have little more money than 24,000. I can do upto 35,000. Can I retire early? Then can I retire at 58? On 58 it will happen at 29,000. I have 35,000. Can I retire at 55? Now your interesting calculation will start No you need 37,000 For retirement at 55.

Early retirement you can take at 37,000. If i do 37,000 per year. I invest in such investments
that give me 12% every year. 7% increase i put minimum. If you think 7% increase is less. Consider growth of salary minimum 8-10%. Why not? Consider 10%. Then in Rs 28,000 you can retire at 55. Retirement corpus also reduced. As early you retire that much less corpus you will want. Value of money comes less. At that time its value will be more. At the age of 55 we need 11.6 crores. How much lump sum funding we need? How much monthly sip
and stepup sip we need? I considered 10% annual increase. Like this If you can do so many
permutations and combinations. You can plan yourself. When can I become financially free? I think this is very interesting calculator If you like as i am a conservative investor I am not taking 12% from whole equity. Suppose we take 9%. This we keep 10. The rate of return become 9% from 12%. Obviously both the sip's will increase. You can do calculation according to that. Which type of investor is I am? If you think here is also 9
then it will change again.

These things you can do so many permutations and combinations
based on your profile. You will get so much support and understand If I invest this much money For this much time Then I can go towards a better retirement. This is how you should work on these things. You can plan early retirement. You want to spend so much or not. 50,000 will not be sufficient. I want to increase my lifestyle. Now I am spending 50,000. But at that time I want to spend 75,000. Acc to that by using
permutation and combination What are my savings now? I can plan such investments or not. Then in those things you will get
so much help from these calculator.. Do check that on our website. If you have any comment If there are complications
then visit our website. Below is our email address and
whats app number is given. All things are written below. You can email us there
if you have any query. Below there is comment section also. Must write in comment section. Hit a like if you liked the video.

If you think some knowledge is added Then hit a like Have a great time ahead friends Jai Hind.

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How to Plan for Early Retirement: Exclusive Retirement Calculator

When someone says the word Retirement, what comes to your mind? Is it the age at which you would probably retire or is it the bank balance that you would have or the abundant time you will have to do whatever you like doing. I think it's a combination of all three. Because all these three require lots and lots of money. Yes, in today’s video we will talk about how you can retire successfully and can generate enough corpus that your lifestyle does not get affected at all. Hi, I'm Samarth, for the past 11 years, I have been working in the finance industry and I'm currently the investments lead at wint wealth. Retirement, it should essentially mean financial freedom. In today’s example we will assume that you started your job or career at 22 or 23 years of age. And as of today, your age is 30 years. For the next 20 years, we are assuming that you'll continue your active line of work, essentially meaning that you will retire by the age of 50. Wait, wait, wait! I know you might be wondering that this video was for early retirement.

See the idea is to let you know that what should be the method for retirement calculation. If you are a little aggressive on that, you might retire by 40 itself or by 45. It all depends on your consistency and your persistence. For the time being , we have calculated this on a very conservative way and hence 50 has been considered as the retirement age. So now we'll be focusing on the example and for this we will be looking at the excel sheet. By the way, this Excel sheet that you can see on the screen can be downloaded using the link in the description and also help us know in the comments if you found this Excel sheet to be useful.

Infact, you can also download sheet right now and use it live while watching the video. You can change the numbers and see if it is suiting you and how it can help you to achieve your retirement. We have assumed that your current age is 30 years. And you started your work life or your career or your job around 22 or 23 years of age. You want to retire at the age of 50 years, your life expectancy is around 80 years. Now because you have already worked for around 7-7.5 years, we are assuming that you have saved roughly two to two and a half lakh per year, so your total savings as on date would be 16 Lakh Rupees. How is this split? Majority portion of investment is done in mutual funds. I too personally, when I started my career, so majority savings (up to 80-90%) I used to do in mutual funds. And I used to split them into growth mutual funds and a small part into dividend mutual funds.

After that since you are doing a job, you will contribute towards EPF. So we have assumed that this is around three lakh rupees. For emergency fund, you have kept some money into FD or bank balance, which is around two lakh rupees, and then remaining money, you have explored another debt option that is public provident fund and under this you have invested two lakh rupees. Basis our assumption and calculation, on this entire corpus of 16 Lakh Rupees up to the age of retirement, that is for the next 20 years, you will generate 10% returns.

So this 16 Lakh Rupees will get converted to 1.15 Crore Rupees. Yes, You heard it right. Believe me, if you do the savings consistently and in a discipline way, your Corpus becomes massive slowly. By the time I had completed five years in my job, I had enough money to pay for my car all in cash. But does that mean that mean, I did so? No. By the way, if you want to know if it makes sense for you to buy a car or use services like Ola and Uber, please watch this video. Now we are assuming that your monthly take home salary is one lakh rupees. And out of this 60,000, that is 60% of your take home salary is spent by you. After that how much would be your savings? 40,000 Rupees. Now if you keep saving this monthly, consistently in a discipline way, then you can easily generate the amount of corpus such that during your retirement life, you can manage your lifestyle very easily and won’t be financially dependent on anyone.

Next assumption which we have taken is that on your salary you will get an increment of around 8%. I know you might be feeling that the 8% figure is too high but you must also consider that although there might be years when you get only 5% or 7%. I really wish you never get so low increments, but there will be years when you will switch your job or get promotion, when your increment might be 20%, 25%. During your pre retirement age, that is up to the age of 50 years we have assumed that years care, return 10% on the amount which you're investing and on the corpus, which you already have save.

Then after retirement this figure drops to 7%. I know you must be thinking this is low, but considering that after retirement your priority will be to save capital and also beat inflation to maintain your lifestyle 7% is a very healthy number. One very important assumption that we have taken is that after retirement there will be a lot of expenses that you won't be incurring. For example, your petrol and traveling expense will reduce substantially. Then it is also true that services like internet where you require a speed of 1 GB currently, will come down to 100 or 200 MBPS then. So that will reduce your expenses. And there are many other such expenses. Okay. So we have assumed that there will be reduction of around 20% to your expenses post retirement.

All these expenses have been adjusted against inflation at the rate of 6%. There are many such expenses which are incurred once or twice in our lifetime. One of them being expenses for sending your child for higher education. If on today’s date, you send your child for higher education so may be you will spend around 30-32 Lakh Rupees, to send the child at a very good institution. This we have assumed that when you will be 52 years old, this expense will occur and at that time, considering the inflation of 6%, this will be around 96 lakh rupees. Now that you have sent your child for higher education, then after he gets settled, probably he or she will get married.

Right? We have assumed that if today you got for their marriage then you will end up spending around 25 Lakh Rupees. According to your assumptions, this event will occur when you will be 60 years old. At that point of time, you will be spending around 80 Lakh Rupees. So this also has been built in, in this model. Last but not the least and definitely one of the most important is: medical expenses. As and when you age increases, simultaneously your medical needs will also probably increase. I really wish, this doesn’t happen but it is quite possible. So on a conservative basis, we have assumed that by the time you turn 65, you might end up needing a medical expense budget of around 50 lakh rupees. Right? Which up till then will be around 1.6 Crores, right. 35 years from now, it would be around 1.60 crores. So assuming all of this if you see all this calculation, then you will find that you would probably end up needing around 8.25 Crore Rupees as your Corpus so that you can retire comfortably.

If you are able to generate this corpus by investing around 40% of your salary basis the following assumptions, month to month, year on year in instruments, which help you generate good returns like mutual funds and corporate bonds for the early starters, and then slowly and slowly moving towards more of conservative investments, where you can easily generate 9.5-9.7%, then you'll be able to achieve this corpus and basis this calculation, that you can see in the third sheet post retirement, you will see that even after you turn 80 years of age around around one crude Rupe, you will still be left with. So if you save in a disciplined way, start investments, then you can easily achieve your retirement. Under this sheet, you can also put your other additional expenses basis your age.

If you will see we have provided Additional 1 to Additional 8 blank spaces, as when you enter there it'll automatically get calculated and you will keep getting the results. The larger your retirement corpus, easier will be your retirement life, the more you will be able to afford to give to your family and enjoy the moments with them. This is why Savings are important. This is why retirement planning is important. And if you're worried to know how you can make your portfolio stronger and better in this video, we have discussed few revenue streams, which will help you generate passive income along with maintaining the safety of your portfolio until you meet next time. Happy Winting!
.

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2 Early Milestones in the Game of Retirement Life

Loren the Game of Life it came out 
in 1960. A board game that you had   in your household growing up? Most definitely we  played lot of games growing up and this is one 
of them. Okay so today what we want to do is we   want to go through the milestones of life we're 
kind of going to do it in numbers. So in a way   we're taking some liberties here the board game is 
like a series of numbers as you move through life.   And as we specifically talk about moving to and 
through retirement what we want to do is give   you strategies give you tips gives you things you 
should be talking to a retirement planner about.   And we'll have a little fun with the Game of Life
along the way. But we should first talk about how we look at every retirement whether you come 
talk with you Loren if you're 55 or 75. We apply five guiding principles to your retirement 
to help you win the game of life.

Yeah there's two   distinct phases of life there's accumulation years 
then there's the retirement years. And when it   comes to those retirement years that's when it's 
important to really start to get organized in the   form of retirement plan. And in that retirement 
plan there are five guiding principles. When   you retire you still need income your W-2 wages 
go away where's the income going to come from?   When you take income you're still going to have to 
pay taxes there's long-term care Medicare planning   legacy planning and then of course the fifth one 
is the investment planning principle. Okay so we   have our cars this is the cutest little thing I've 
got six people in my car because I've got four   children and my husband in here.

Loren has his 
daughter Jace and the little dog Coco no Mocha,   Mocha is in the car with Loren. So Loren like I 
said we're gonna have a little fun with this. Why   don't you spin once for the first time and then 
we won't spin to continue. But we'll get started   on our game. Oh two, alright Loren gets started on 
two. Would you like me to take the, goes he goes   two. And let's draw a card just fun so we can kind 
of refresh ourselves on what the cards are for the   Game of Life. I'll draw the card, I'll answer the 
first one. Alright you go first. Ah get a pool,   I like this first card you probably like that 
Jace would like to get a pool as well. So it says   pay the bank $50,000. Wow, pools are expensive. 
Well, that sounds a lot like today's prices. So   that's the first stop or the first card that we've 
picked on the game of life.

Now the first stop on   your journey to and through retirement as we 
pull the numbers kind of on your board game   is age 50. So you're going through the game of 
life you hit age 50. What should you be thinking   about in terms of retirement? From a retirement 
planning standpoint age 50 is a milestone.   A big portion of this milestone is now you're able 
to contribute more towards your retirement savings   than what you've ever been able to do before. 
If you're under age 50 into your IRA the max   you can contribute is $6,000 but at age 50 you 
have a thousand dollar catch-up contribution.   So a total now of $7,000 but here's 
where the real fun comes into play.  At age 50 is through your employer sponsor plans 
your 401k plans.

Before age 50 you could only   contribute up to $19,500 you get an extra $6,500 
contribution bonus if you will. Once you obtain   age 50 for a total contribution of $26,000. So 
now if you're age 50 or beyond you can actually   contribute the max to your 401k plan. And if you 
qualify from an income standpoint also you can   contribute the max to your IRA. So, the 7,000 plus 
the 26.5 now you can start saving for retirement   and accumulate that wealth a lot more quicker. 
And you ever have conversations with people about   you know is it usually a no-brainer contribute 
that 6,500 or do they have to look at all the   other moving pieces in their life too. Because at 
50 I know I'll still have kids at home, a lot of   people still have kids at home so that 6,500 feels 
like a lot of money. It does feel like a lot of   money and so it's different for everybody. In each 
one of these milestones that we talk about here on   this on this show. The outcomes or the strategies 
that you incorporate with it will be different   for everybody. And that's the necessity of a 
customized written plan as you make the transition   from the working years to the retirement years. 
Your life your circumstances your resources that   you have your cash flow is different than most 
other people.

So your plan needs to be customized   to your circumstance. Okay I have to spin I 
know I cannot spin a two that's not hard to do,   I got three okay I'm gonna take the bus here 
go with me and the four kids we got three. Alright here we go, promotion! 
Your hard work paid off spin again.   So a promotion obviously is a real piece of 
retirement and the nice thing about a promotion is   maybe you can contribute a little bit more to 
that 401k or or do a little bit more retirement   planning as those promotions come along so. Let's 
talk about our next stop on the game of life   retirement style and it's age 55. What do we need 
to know there? Age 55 is an important milestone   because now if you separate service from your 
employer and you have an employer-sponsored plan   now you have penalty free withdrawal privilege. 
And this is a very little known loophole as it   relates to these employer-sponsored plans. So, 
if you're working with your employer you're 56   years old you retire or you get laid off or you 
just decide hey i'm going to go somewhere else   if you take your distributions from that employer 
plan you will not have to pay that 10% penalty   even though you're under age 59 and a half.

So a 
lot of people think 59 and a half I take money out   of my retirement plan I'm going to be imposed 
that 10% penalty but if you take it after you   separate service post 55 from that employer plan 
you don't have that 10% penalty. And when you say   take it can you take it all at once is that the 
best strategy typically or do you want to spread   that out? Well there's a couple different things 
that goes into that. Let's say you can take it   all once so if you have $200,000 underneath your 
employer plan your 56 you leave that employer.   You can take that full $200,000 out but if it's 
pre-tax money meaning it's never been taxed before   it's going to jump you up into a tax bracket that 
is ugly.

So even though you can, you may not want.   So you can't put it in an IRA or something right 
away? You can put it into an IRA but once you do   so now that money lives underneath the IRA rules. 
Which means you cannot take it out until 59 and   a half without the 10% penalty so here's where a 
lot of the planning will come into play especially   if you want to retire prior to 59 and a half. 
Is you may choose to leave that $200,000 there   maybe you have some other IRA money that you know 
you're not going to use until post 59 and a half   or you can say between 56 and 59 and a half you're 
only going to need a 100,000 of that so many times   the employer's plan will allow you to roll the 
100,000 keep a 100,000 there and then you can   use that for the penalty free cash flow.

Thank you 
for watching this clip of retiring today and don't   forget to subscribe. If you have questions
about your retirement plan, take advantage   of the complimentary 15-minute 
retirement checkup phone call..

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How To Invest 2 Million Dollars For Retirement

2 million dollars can pay out $200,000
a year of income. In this episode,
I'm going to address the question that you wouldn't believe how many times is
asked. "How to invest 2 million dollars for
retirement?" Well, the answer is similar to how can I invest a million or 5
million or 20 million or recently a billionaire asked me,
"How can I invest 400 million dollars to have tax-free income?" So, get ready. I'm
going to show you the power behind creating
predictable rates of return that can give you 10 payouts tax-free
for as long as you live.

Hi, I'm Doug Andrew. I'm in my radio
studio right now. I have broadcast a radio show every
single week for the last 12 years. It's called 3-dimensional
wealth radio. And that is also the name of my YouTube
channel. 3-Dimensional Wealth. See, 3 dimensions has to do with the
financial dimension where I've helped people for 46 plus years
optimize their financial assets, minimize taxes and
not outlive their money in retirement. But also there's two other dimensions
that have to do with the wisdom and the experiences you gain in life and how to leave behind your heritage and
how to fish instead of dumping fish to your kids and grandkids laps.
And this is actually a concern for many people
that have several million dollars because they don't want to ruin their
children. So, whenever people come to me and ask,
"Golly, Doug. How to invest 2 million or 5 million or
10 million? A huge lump sum for retirement?" Usually i'm impressed
because they have that much money.

And it's not because they need that
money to generate income but they would like to have the ability,
the option to be able to take income out and not deplete that nest egg.
And so, many times when i find out their goal
and where the money came from, maybe a settlement, maybe the sell of a business,
I have counseled many dentists who sold their dental practice for 2 million
dollars.

Or one time I had a jewelry store owner
that sold his jewelry stores for 2 million dollars several
years ago. It can be an electrician. Many a chiropractor did
the same thing. Hey, I have I have a couple of million dollars. So,
what advice did I give all of these people when they
asked the question? Well, first of all i wanted to know is
this your main or sole source for income
in retirement? Or is this sort of on top of what you already accumulated?
Now, many times they'd say, "Oh, no. This is like bonus money.
I don't need the money right now but I want it liquid and safe.
That's pretty nice to have an extra couple of million that you really don't
need. But I don't want them to lose that." They
don't want to lose it either. That's why they came. Because they know
that I'm very passionate about preserving principle,
safety of that principle.

They don't want to lose this 2 million.
Many people came across a lump sum like that from an
inheritance where they've been going along and they were responsible and
accountable. And they saved 2, 3, 4, 5 million in their
accounts. Maybe IRAs and 401Ks. But then
all of a sudden they inherited 2 million or more. And they would come
and say, "Golly, Doug. Where can i invest this 2 million in retirement?" So,
whether you need the money for income immediately or not or whether
you want to preserve it so if you did need it in
your lifetime, or you want to pass it on to your
children, you want to maximize what you leave behind,
i know the answer where to put it regardless of which of those goals you
have for a lump sum like 2 million dollars.
You want to hear the answer? If the 2 million
in this example is a lump sum, a windfall or a settlement or something like that,
an inheritance. And they tell me they don't need the money, I go, "Well, I could
show you how to safely set aside that 2 million so it will
double about every 7 years.

Probably at the worst return I've ever
achieved it would double every 10 years. Does that sound pretty good?" They go, "Well,
what rate of return is that?" "Well, rule of 72. If it doubles every 7.2
years that's a 10% rate of return." "Really? You can do that?"
And I said, "Well, Ii can't guarantee it but I've averaged 10.07 for the last 25
years by putting money into a max-funded, tax-advantaged
indexed universal life insurance contract if it's structured correctly.
Where you take the least amount of death benefit
allowed under the IRS guidelines and you put in the most allowed.

In this case 2
million dollars." So, you're taking the least amount of
insurance you can get away with. If you were 60-years old, the least
amount of insurance to accommodate 2 million would be 5 million of insurance.
If you're 70 years old, the least amount of insurance for
2 million might be just over 3 million. Because
the objective isn't to get a bunch of insurance. It's to get the least amount
of insurance the IRS will let you get away with and
put in the most they will allow. In this case the most would be 2 million,
in this example. That's called the GSP. It stands for
guideline single premium. Very few advisors understand this
terminology that's why it's critical you go to somebody
who understands how to do what i'm talking about. So, when you do that,
then the money will grow very safely at internal rates of return of 7 to 10
percent.

Bery uh predictable based upon some of the
worst periods since the great depression like 2000 to
2010. I averaged 7.23% just using
indexing. By adding rebalancing, I was able to earn
over 10%. So, your money can double every 7 to 10
years. 2 million will grow to 4 million, to 8 million, to 16 million every 7 to 10
years. Now, if the person said, "You know what?
I want this uh two million dollars to generate
income for me within 5 years from now." I go, "Okay, great." So, then i comply with a
tax citation called Tamra. Tamra is an acronym that stands
for the technical and miscellaneous revenue act
of 1988. This is a strategy that we're the number 1
experts on this part of the tax code in America. We teach very
savvy, sophisticated CPAs and tax attorneys
about TEFRA, DEFRA and TAMRA and section 72 E,
7702 and 101 A of the internal revenue code.
This is where money inside of a properly structured insurance contract
will accumulate tax-free and allow you to access or take tax-free income when
you comply.

Tamara says you can throw in
2 million bucks in one fell swoop into a maximum funded insurance contract
and it will grow tax-deferred at those rates of return.
But if you want tax-free income that tells me, "Hmm, okay.
So, instead of maximizing what you leave behind….
In other words you put in 2 million and you don't need the money.
And when you die you want it to leave behind 5 million.
You don't have to worry about Tamara." You put in 2 million
and when you die, it leaves behind 5 million.
And you can tap into income but it would be taxable income.
So, if you wanted to maximize what you left behind
and you put in 2 million dollars, you don't have to worry about Tamra.
The minimum death benefit is 5 million.

So when you die,
you're leaving behind 5 million totally income tax-free.
But if you want to preserve the right to have tax-free
income, then you want to comply with Tamra.
That means 2 million would allow you to fund it
in 4 years in one day with approximately 20% a year. What's
20% of 2 million? It's 400 000. So, you create
a plan to take 400,000 of the 2 million
every year and put it into the insurance contract.
The first day of the first year, you put in the first 400,000.
The remaining uh million six hundred thousand, we
we find a place to temporarily uh keep it so that it's safe.
And there when we transfer the next $400,000 on the first day of the second year.
You do that for 4 years and 1 day and now you've got 400 000
in there 5 times.

That's 2 million. Now,
after 4 years and 1 day, 2 million dollars can
easily generate $200,000 a year of tax-free
income because 10% payouts are extremely
common with people that we've been helping for more than 45 years.
Especially with indexed universal life insurance contracts. So,
the concept here is if you want it to grow tax-free, it's the
same answer. You just structure it maybe
differently. If you want to maximize what you leave behind when you die,
you don't have to worry about compliance with Tamra.
If you want to grandfather yourself to be able to tap into it totally
income tax-free, you comply with Tamra by funding it over 4 years in one day.
But if you're wondering what to do with a lump sum like 2 million
bucks, I would make sure it is grandfathered to be tax-free.
Not only as it accumulates but if you want
income to be tax free, you make sure it complies with Tamra.
If you want to maximize what you leave behind when you die,
then you take more death benefit and you make sure that when you pass away based
upon your life expectancy, that 2 million can leave
behind 5, 6 or 7 million.

So, let me connect the dots by
sharing an actual story with a client with you right now.
After teaching a seminar, a gentleman who was aged 70 ½
came to me and he had 500,000 which was a lot of money years ago. But
this man was had a net worth well in excess of 5 million. And I was
talking about strategic rollouts where i tell
people to get money out of your IRAs or 401Ks over a 5-year period.
And so, 500,000 would mean that we would transfer 100,000 a year out
of his IRAs each year for 5 years. And then he
would have his 500,000 that could double every 7 to 10
years. And then a 500,000 could generate 50,000
a year of tax free income. He said, "Doug, I don't need this money.
But I know i have to start withdrawing it. I'm going to be penalized 50
by the IRS. I will never be in a lower tax bracket.
I want to pull out the whole 500,000 in one fell swoop."
In a 40-percent bracket, he had done the math.

"I will pay 200,000 in tax. I want to take
the net of 300,000 in one lump sum and maximize what I
leave behind because I don't need the money.
I don't need the income." He said, "I could spend 4 times
what I need to live on and never outlive my money."
What a great blessing that was. So, in that case,
knowing that he did not need it for income,
we took 300,000 and we didn't maximum fund to contract.

I calculated his life
expectancy and we were able to get 1.5 million of
insurance. Sure enough because of his health, he
died in less than 10 years. The 300,000 which was only what it was
worth after tax in his IRAs left behind 1.5 million tax free.
Once he told me his goal, he wanted to maximize what he left behind,
I could have taken his 300,000 and only had about 600,000 of insurance if
he wanted income. He wanted to maximize what he left
behind so I didn't have to comply with Tamra.
And i got 1.5 million for his heirs (which they were grateful for) by
taking the money out of his IRAs which he
already decided to do. 300,000 blossom to a million and a half dollars about a
year later totally tax-free. You analyze what is it that is the greatest
objective when you have a lump sum and taking all things into consideration.
The best solution, the miracle solution in almost every
case is a maximum-funded, tax-advantaged
insurance contract.

So, if you want to learn more about what
that is and how it works and make sure that you structure one
correctly with the right advisor that knows what they're doing, I
would recommend you read this book. This is my 11th book. It's a bestseller.
It retails for $20. But I want to gift one of these to you absolutely
free. So, to claim your free copy, go to laserfund.org. L-A-S-E-R, fund, ".com".
You simply pay $5.95 shipping and handling. I'll pay for the book, you pay
for the shipping. You'll have options to get an audio version
if you want. There's also video master classes.
Once you get educated, I can point you to somebody who knows how to do it
correctly if you would like. There's a chapter in this book that
talks about all of the questions you should ask an advisor.

And
if they can't answer those questions, you'll know they don't understand how to
do it correctly. Empower yourself. You will learn more by reading this book.
The 99% of financial advisors know about what I
just talked about..

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2 Early Milestones in the Game of Retirement Life

Loren the Game of Life it came out 
in 1960. A board game that you had   in your household growing up? Most definitely we  played lot of games growing up and this is one 
of them. Okay so today what we want to do is we   want to go through the milestones of life we're 
kind of going to do it in numbers. So in a way   we're taking some liberties here the board game is 
like a series of numbers as you move through life.   And as we specifically talk about moving to and 
through retirement what we want to do is give   you strategies give you tips gives you things you 
should be talking to a retirement planner about.   And we'll have a little fun with the Game of Life
along the way.

But we should first talk about how we look at every retirement whether you come 
talk with you Loren if you're 55 or 75. We apply five guiding principles to your retirement 
to help you win the game of life. Yeah there's two   distinct phases of life there's accumulation years 
then there's the retirement years. And when it   comes to those retirement years that's when it's 
important to really start to get organized in the   form of retirement plan. And in that retirement 
plan there are five guiding principles. When   you retire you still need income your W-2 wages 
go away where's the income going to come from?   When you take income you're still going to have to 
pay taxes there's long-term care Medicare planning   legacy planning and then of course the fifth one 
is the investment planning principle. Okay so we   have our cars this is the cutest little thing I've 
got six people in my car because I've got four   children and my husband in here. Loren has his 
daughter Jace and the little dog Coco no Mocha,   Mocha is in the car with Loren.

So Loren like I 
said we're gonna have a little fun with this. Why   don't you spin once for the first time and then 
we won't spin to continue. But we'll get started   on our game. Oh two, alright Loren gets started on 
two. Would you like me to take the, goes he goes   two. And let's draw a card just fun so we can kind 
of refresh ourselves on what the cards are for the   Game of Life. I'll draw the card, I'll answer the 
first one. Alright you go first. Ah get a pool,   I like this first card you probably like that 
Jace would like to get a pool as well. So it says   pay the bank $50,000. Wow, pools are expensive. 
Well, that sounds a lot like today's prices.

So   that's the first stop or the first card that we've 
picked on the game of life. Now the first stop on   your journey to and through retirement as we 
pull the numbers kind of on your board game   is age 50. So you're going through the game of 
life you hit age 50. What should you be thinking   about in terms of retirement? From a retirement 
planning standpoint age 50 is a milestone.   A big portion of this milestone is now you're able 
to contribute more towards your retirement savings   than what you've ever been able to do before. 
If you're under age 50 into your IRA the max   you can contribute is $6,000 but at age 50 you 
have a thousand dollar catch-up contribution.   So a total now of $7,000 but here's 
where the real fun comes into play.  At age 50 is through your employer sponsor plans 
your 401k plans. Before age 50 you could only   contribute up to $19,500 you get an extra $6,500 
contribution bonus if you will. Once you obtain   age 50 for a total contribution of $26,000. So 
now if you're age 50 or beyond you can actually   contribute the max to your 401k plan.

And if you 
qualify from an income standpoint also you can   contribute the max to your IRA. So, the 7,000 plus 
the 26.5 now you can start saving for retirement   and accumulate that wealth a lot more quicker. 
And you ever have conversations with people about   you know is it usually a no-brainer contribute 
that 6,500 or do they have to look at all the   other moving pieces in their life too. Because at 
50 I know I'll still have kids at home, a lot of   people still have kids at home so that 6,500 feels 
like a lot of money. It does feel like a lot of   money and so it's different for everybody. In each 
one of these milestones that we talk about here on   this on this show. The outcomes or the strategies 
that you incorporate with it will be different   for everybody. And that's the necessity of a 
customized written plan as you make the transition   from the working years to the retirement years. 
Your life your circumstances your resources that   you have your cash flow is different than most 
other people.

So your plan needs to be customized   to your circumstance. Okay I have to spin I 
know I cannot spin a two that's not hard to do,   I got three okay I'm gonna take the bus here 
go with me and the four kids we got three. Alright here we go, promotion! 
Your hard work paid off spin again.   So a promotion obviously is a real piece of 
retirement and the nice thing about a promotion is   maybe you can contribute a little bit more to 
that 401k or or do a little bit more retirement   planning as those promotions come along so.

Let's 
talk about our next stop on the game of life   retirement style and it's age 55. What do we need 
to know there? Age 55 is an important milestone   because now if you separate service from your 
employer and you have an employer-sponsored plan   now you have penalty free withdrawal privilege. 
And this is a very little known loophole as it   relates to these employer-sponsored plans. So, 
if you're working with your employer you're 56   years old you retire or you get laid off or you 
just decide hey i'm going to go somewhere else   if you take your distributions from that employer 
plan you will not have to pay that 10% penalty   even though you're under age 59 and a half. So a 
lot of people think 59 and a half I take money out   of my retirement plan I'm going to be imposed 
that 10% penalty but if you take it after you   separate service post 55 from that employer plan 
you don't have that 10% penalty.

And when you say   take it can you take it all at once is that the 
best strategy typically or do you want to spread   that out? Well there's a couple different things 
that goes into that. Let's say you can take it   all once so if you have $200,000 underneath your 
employer plan your 56 you leave that employer.   You can take that full $200,000 out but if it's 
pre-tax money meaning it's never been taxed before   it's going to jump you up into a tax bracket that 
is ugly.

So even though you can, you may not want.   So you can't put it in an IRA or something right 
away? You can put it into an IRA but once you do   so now that money lives underneath the IRA rules. 
Which means you cannot take it out until 59 and   a half without the 10% penalty so here's where a 
lot of the planning will come into play especially   if you want to retire prior to 59 and a half. 
Is you may choose to leave that $200,000 there   maybe you have some other IRA money that you know 
you're not going to use until post 59 and a half   or you can say between 56 and 59 and a half you're 
only going to need a 100,000 of that so many times   the employer's plan will allow you to roll the 
100,000 keep a 100,000 there and then you can   use that for the penalty free cash flow.

Thank you 
for watching this clip of retiring today and don't   forget to subscribe. If you have questions
about your retirement plan, take advantage   of the complimentary 15-minute 
retirement checkup phone call..

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👉Retirement Planning At 60 in 2024 – 6 Tips💥

imagine this you're approaching your 60s and starting to think about retirement you've worked hard all your life and it's time to enjoy the fruits of your labor but before you kick back and relax it's time to get laser focused on your retirement plan in this video we'll cover six important tips to help you plan for your retirement at 60. tip one assess your financial situation Jane has a woman who's been working as a nurse for 30 years she's always been Frugal and saved as much as she could but she's not sure she's accumulated enough for a comfortable retirement to assess her financial situation she makes a list of all her assets and her expenses she realizes that she needs to save more if she wants to maintain her lifestyle in retirement tip two explore different retirement options Bob's a 62 year old man has been working as an engineer for the last 40 years his employer has a 401k and he's been contributing to it for years Bob also explores other retirement options such as an IRA to maximize his retirement savings tip three diversify your Investments Mike is a 65 year old man who's been retired for a few years he Diversified his portfolio by investing in many different stock and bond index funds by diversifying his Investments might minimize risk and ensure a stable retirement income tip 4 plan for health care costs Sarah is a 63 year old woman who's been working as a teacher for the last 35 years she's healthy now but she knows health care costs can be expensive in retirement to plan for health care costs Sarah bought long-term care insurance to cover any medical expenses that could arise in the future tip five consider your Social Security benefits Tom is a 64 year old man's been working in construction for the last 45 years he's not sure when to start receiving his social security benefits he decides to wait till 67 to start taking his social security so he'll get a higher benefit which will give him a more comfortable retirement tip six have an actual retirement plan in place Lisa is a 61 year old woman has been working as a sales manager for the last 25 years she has a plan in place that includes a budget for her retirement expenses and a plan for Hospital spend her time in retirement Lisa plans to travel volunteer and take up a new hobby in retirement to stay active and engaged following these tips and learning from the experience of others you can ensure a comfortable and fulfilling retirement it's a great idea to consult with a good financial advisor click on the link in the description if you'd like to set a time to talk with us

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When can I retire? | How much Retirement Corpus is enough?

Hello friends welcome to
yadnya investment academy. Today is friday. So today we will talk about
a financial planning topic. Today's topic is Related to retirement planning A very common question of you all that come Obviously this all knows. Retirement is a very important goal. If we talk about financial goals. Mostly it should be. Mostly when i do financial planning So many persons financial
planning i have done personally Then in that comes. Retirement is a very important goal. In which we need a lot of money Nowadays early retirement is occurring.

FIRE environment talks are occurring. Financial free retire early In such things When retirement comes in goal One important thing comes How much money do I need? Tell me this much money is enough. Then I can retire. That is a normal question. For this we have already
developed an interesting calculator but that was before pay wall. Now we have removed that from pay wall because it is very useful calculator. So a retirement calculator we have made. In that with so many
permutations combinations We can get an idea This much retire corps I need. If I reach here then I have done well. I am at least financially free. Now I have to retire. We have to work further or not. Then it is my decision. If above that. Now I am just sharing my screen. Now you will see here You will go on investyadnya website There is a section named
tracker and calculator. In this there is a retirement calculator.

Open this Now here we have to fill information. Suppose i am putting age of 30. You have to retire suppose on 60. Suppose we took an
example i have to retire on 60. Life expectancy we mostly suggest We should keep 90, 95, 100. With a conservative estimate If you keep 100 then it is very
good conservative estimate. If you want to take optimistic If you took practical then it should be 90. Suppose i am putting here 95. Fourth information is our Current annual expense When we do retirement calculation Obvious we took assumptions. One assumption is this the
expense i am doing today Suppose when i retire Then also my expenses should be like this. Means my lifestyle of now remain maintained Neither i increase nor decrease. Suppose I am spending 50k per month today. The expenses that are occurring. After retirement I will do the same expenses. After retirement expenses can reduce. It can be your house if
you are living now on rent. It can be so much rental expense. That can reduce.

Now your children's expenses are so much. They will reduce at that time. Sometimes after retirement
expenses increase. Like vacation expenses mostly increases. Sometimes medical expenses increase. Some expenses have increased. Mostly as an advisor If we took a general advice then we say. Keep the same expenses as they are now. Don't do much changes in that. Some increases some decreases. For example if we want
to do a simple calculation Then considering to current expenses Suppose my expense is 50,000 The profile we are taking has
expenses of 50,000 per month. Then it is 6 lakh rupees per year.

You have to put today's expenses. You don't have to put off retirement age. That's all it will insert. Inflation number How much inflation number we have to take? 7% inflation is mostly suggested by India. If you want to be conservative
then you can take 8%. If you want to be aggressive
then you can take 5-6%. Inflation you should calculate by your own. Every year how my expenses are increasing? If you know little bit idea about that These things are increasing
according to my expenses. Edcuation expenses children's fees It increases almost 8-10% every year. Rentals mostly 10%. Landlords mostly increases rent by 10%. My personal inflation is 8, 9-10%. You take according to your. So for calculation here
I am taking 7% inflation. Then return on investment. On the basis of return on investment. How much is my return on investment? Before retirement and after retirement. Now I am retiring at 60. At 30 I am starting investing. How much should I invest for that? How much retirement corpus I will get? The reason I am investing now. On that how much return should I expect? It depends where you are investing.

If you feel I will invest
mostly in equity markets. Retirement oriented because it is very long horizon. I am of 30 years and retiring at 60 years. Horizon is of 30 years. All that I am investing I will invest mostly on equity. Then we can take 11-12%
return on investment All that we will invest now. Or we kept in equity we can take that. If you feel This house is my retirement corpus This will increase according to that. Then on real estate the return
on expectations that remains. Basically there is round inflation of 7-8%. It depends on you if you have EPFO. That is a very big retirement corpus On EPF we get around 8%. According to that you have invested here. Overall that you are investing Or you are planning This is for retirement
and I am going to invest.

What are expected returns on that? Till 60. Pre retirement is retirement on investment. Suppose it is 12%. Whole the money I will put in equity. Then you took 12% return. Then post retirement my corpse will become. How much will it grow? Suppose I retire and I get corpus of 5 crores. Then 5 crore rupees Where will I invest? Again very difficult question If you are of 30 years then in 60 years. This is very difficult. This is a very big assumption. We have to think mostly at 60 our risk profile decreases. We will not take much equity allocation.

Suppose now we have 60-70 equity allocation That time it becomes 20-30% or 40%. I go a little bit on conservative. I say to most of the people Take percentage equal to inflation I get return same as inflation. If I want to take. Then 0.5-1% extra. We took here 8%. Means 8% of post retirement. My corpus will grow 8% after that. Inflation will remain 7%.

This is planning according to that. We will discuss these points later. Therefore I am doing all these zero. We inserted these things. What we say? Our retirement age, life expectancy. Our annual expense, inflation. These all are our compulsory fields. If I consider this now. Sorry some value needs to be inserted. Randomly value we are inserting. So that it can work. If I consider this now. Then I need retirement
corpus of 14.6 crores. If you are of 30 years and you have to do expense of 50k per month.

At today's value Today's 50k offcourse will not remain same at the time of retirement. They will increase with inflation. If you have to maintain today lifestyle The 50k expenses you are doing today Same you want to do at 60. After 30 years. This is the value after 30 years. Don't be so afraid. Today 14.5 crore is very much. After 30 years the value of 14.5 That should be arounf 70-80 lakh or 1 crore I am doing guess work. It will not be more than that. Think if I have 1 crore rupees today then I will be able to do for next 35 years. 60-95 years means 35 years 35k per month That to inflation to adjust it. I will get it consistently till 95 in 95 it will become zero. If i invest lumpsum then i can invest 50 lakhs. Considering I don't have anything. If I have 50 lakh rupees I will invest it. For 30 years they will grow by 12%. Expected pre-retirement. Then also my retirement money will be done. Monthly Sip that I have to do That is around 50,000 in this. 48,000 rupees sip i need in this. What is the meaning of step up? I will tell this in next.

If you have plan in 30 years 60 years. I have to do all these things. Then you have to do monthly sip of 48,000. To retire for next 30 years. Remember this is a monthly sip. It will not increase. Every year you have to do 48k consistently. Obviously our salary will increase in years Inflation increases salary increases. Now 48,000 will seem so big But after 3-5 years You will not feel big amount. That's what I am saying. In that our step up point comes. Now you will say I don't have 48,000 to invest.

It is a very big amount. From where 48,000 will come. If we are spending 50,000 Then by saving 50,000 we
can invest in retirement corpus. That is not possible. Then in that our second comes step up sip What is the meaning of step up sip? What is annual increase in our income? Can we increase sip every year? I cannot invest 48,000 now but from next year i can increase.

If you think my annual increase in income. If inflation is of 7%. With 7% income should increase If we take seven With 7% it is increasing. We considered 7% inflation. Salary is also increasing by 7%. In worst case salary is not changing. With 7% there is increase in salary. Existing investment Do you have any investment now? That you think this is my retirement income From that also it will reduce. Suppose if you have EPFO ​​corpus Suppose of 5 lakh rupees. 5 lakh rupees i inserted here. This is my EPFO ​​of 5 lakh rupees. I will use it for retirement. On that how much return I will get on EPFO? Return are 8% Then we consider we will get 8%. It is tax free means you will get 8% Suppose i have 5 lakh rupees On that i will get 8% more. Now let's do calculation again. Now since EPFO ​​arrived. From 48 it became 46. Retirement corpus remained same. So now we have to do Sip of 46,000. We can do step up sip of 24,000. We invested 24,000 rupees this month. Every year we increase that by 7%. From annual increase in income we have to do this annual increase in sip.

Today you started sip of 24,300. Next year increased 7% on that. Then again in next year increase 7% on that Compounding 7%. Increase 7% every year Till the age of 60. Then also your goal will be achieved. Then you will have 14.6 crores rupees. Considering these were our rates of returns So it is very very good. You can apply so much
permutations and combinations on this. I have little more money than 24,000. I can do upto 35,000. Can I retire early? Then can I retire at 58? On 58 it will happen at 29,000. I have 35,000. Can I retire at 55? Now your interesting calculation will start No you need 37,000 For retirement at 55. Early retirement you can take at 37,000. If i do 37,000 per year. I invest in such investments
that give me 12% every year. 7% increase i put minimum. If you think 7% increase is less. Consider growth of salary minimum 8-10%. Why not? Consider 10%. Then in Rs 28,000 you can retire at 55. Retirement corpus also reduced. As early you retire that much less corpus you will want. Value of money comes less.

At that time its value will be more. At the age of 55 we need 11.6 crores. How much lump sum funding we need? How much monthly sip
and stepup sip we need? I considered 10% annual increase. Like this If you can do so many
permutations and combinations. You can plan yourself. When can I become financially free? I think this is very interesting calculator If you like as i am a conservative investor I am not taking 12% from whole equity. Suppose we take 9%. This we keep 10. The rate of return become 9% from 12%. Obviously both the sip's will increase. You can do calculation according to that. Which type of investor is I am? If you think here is also 9
then it will change again. These things you can do so many permutations and combinations
based on your profile. You will get so much support and understand If I invest this much money For this much time Then I can go towards a better retirement.

This is how you should work on these things. You can plan early retirement. You want to spend so much or not. 50,000 will not be sufficient. I want to increase my lifestyle. Now I am spending 50,000. But at that time I want to spend 75,000. Acc to that by using
permutation and combination What are my savings now? I can plan such investments or not.

Then in those things you will get
so much help from these calculator.. Do check that on our website. If you have any comment If there are complications
then visit our website. Below is our email address and
whats app number is given. All things are written below. You can email us there
if you have any query. Below there is comment section also. Must write in comment section.

Hit a like if you liked the video. If you think some knowledge is added Then hit a like Have a great time ahead friends Jai Hind.

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When can I retire? | How much Retirement Corpus is enough?

Hello friends welcome to
yadnya investment academy. Today is friday. So today we will talk about
a financial planning topic. Today's topic is Related to retirement planning A very common question of you all that come Obviously this all knows. Retirement is a very important goal. If we talk about financial goals. Mostly it should be. Mostly when i do financial planning So many persons financial
planning i have done personally Then in that comes. Retirement is a very important goal. In which we need a lot of money Nowadays early retirement is occurring. FIRE environment talks are occurring. Financial free retire early In such things When retirement comes in goal One important thing comes How much money do I need? Tell me this much money is enough.

Then I can retire. That is a normal question. For this we have already
developed an interesting calculator but that was before pay wall. Now we have removed that from pay wall because it is very useful calculator. So a retirement calculator we have made. In that with so many
permutations combinations We can get an idea This much retire corps I need. If I reach here then I have done well. I am at least financially free. Now I have to retire. We have to work further or not. Then it is my decision. If above that. Now I am just sharing my screen.

Now you will see here You will go on investyadnya website There is a section named
tracker and calculator. In this there is a retirement calculator. Open this Now here we have to fill information. Suppose i am putting age of 30. You have to retire suppose on 60. Suppose we took an
example i have to retire on 60. Life expectancy we mostly suggest We should keep 90, 95, 100. With a conservative estimate If you keep 100 then it is very
good conservative estimate. If you want to take optimistic If you took practical then it should be 90. Suppose i am putting here 95. Fourth information is our Current annual expense When we do retirement calculation Obvious we took assumptions.

One assumption is this the
expense i am doing today Suppose when i retire Then also my expenses should be like this. Means my lifestyle of now remain maintained Neither i increase nor decrease. Suppose I am spending 50k per month today. The expenses that are occurring. After retirement I will do the same expenses. After retirement expenses can reduce. It can be your house if
you are living now on rent. It can be so much rental expense. That can reduce. Now your children's expenses are so much.

They will reduce at that time. Sometimes after retirement
expenses increase. Like vacation expenses mostly increases. Sometimes medical expenses increase. Some expenses have increased. Mostly as an advisor If we took a general advice then we say. Keep the same expenses as they are now. Don't do much changes in that. Some increases some decreases. For example if we want
to do a simple calculation Then considering to current expenses Suppose my expense is 50,000 The profile we are taking has
expenses of 50,000 per month.

Then it is 6 lakh rupees per year. You have to put today's expenses. You don't have to put off retirement age. That's all it will insert. Inflation number How much inflation number we have to take? 7% inflation is mostly suggested by India. If you want to be conservative
then you can take 8%. If you want to be aggressive
then you can take 5-6%. Inflation you should calculate by your own. Every year how my expenses are increasing? If you know little bit idea about that These things are increasing
according to my expenses. Edcuation expenses children's fees It increases almost 8-10% every year. Rentals mostly 10%. Landlords mostly increases rent by 10%. My personal inflation is 8, 9-10%. You take according to your. So for calculation here
I am taking 7% inflation. Then return on investment. On the basis of return on investment. How much is my return on investment? Before retirement and after retirement.

Now I am retiring at 60. At 30 I am starting investing. How much should I invest for that? How much retirement corpus I will get? The reason I am investing now. On that how much return should I expect? It depends where you are investing. If you feel I will invest
mostly in equity markets. Retirement oriented because it is very long horizon. I am of 30 years and retiring at 60 years. Horizon is of 30 years. All that I am investing I will invest mostly on equity. Then we can take 11-12%
return on investment All that we will invest now. Or we kept in equity we can take that. If you feel This house is my retirement corpus This will increase according to that. Then on real estate the return
on expectations that remains. Basically there is round inflation of 7-8%.

It depends on you if you have EPFO. That is a very big retirement corpus On EPF we get around 8%. According to that you have invested here. Overall that you are investing Or you are planning This is for retirement
and I am going to invest. What are expected returns on that? Till 60. Pre retirement is retirement on investment. Suppose it is 12%. Whole the money I will put in equity. Then you took 12% return. Then post retirement my corpse will become. How much will it grow? Suppose I retire and I get corpus of 5 crores.

Then 5 crore rupees Where will I invest? Again very difficult question If you are of 30 years then in 60 years. This is very difficult. This is a very big assumption. We have to think mostly at 60 our risk profile decreases. We will not take much equity allocation. Suppose now we have 60-70 equity allocation That time it becomes 20-30% or 40%. I go a little bit on conservative. I say to most of the people Take percentage equal to inflation I get return same as inflation. If I want to take.

Then 0.5-1% extra. We took here 8%. Means 8% of post retirement. My corpus will grow 8% after that. Inflation will remain 7%. This is planning according to that. We will discuss these points later. Therefore I am doing all these zero. We inserted these things. What we say? Our retirement age, life expectancy. Our annual expense, inflation. These all are our compulsory fields. If I consider this now. Sorry some value needs to be inserted. Randomly value we are inserting. So that it can work.

If I consider this now. Then I need retirement
corpus of 14.6 crores. If you are of 30 years and you have to do expense of 50k per month. At today's value Today's 50k offcourse will not remain same at the time of retirement. They will increase with inflation. If you have to maintain today lifestyle The 50k expenses you are doing today Same you want to do at 60. After 30 years. This is the value after 30 years. Don't be so afraid. Today 14.5 crore is very much. After 30 years the value of 14.5 That should be arounf 70-80 lakh or 1 crore I am doing guess work. It will not be more than that. Think if I have 1 crore rupees today then I will be able to do for next 35 years. 60-95 years means 35 years 35k per month That to inflation to adjust it. I will get it consistently till 95 in 95 it will become zero. If i invest lumpsum then i can invest 50 lakhs.

Considering I don't have anything. If I have 50 lakh rupees I will invest it. For 30 years they will grow by 12%. Expected pre-retirement. Then also my retirement money will be done. Monthly Sip that I have to do That is around 50,000 in this. 48,000 rupees sip i need in this. What is the meaning of step up? I will tell this in next. If you have plan in 30 years 60 years.

I have to do all these things. Then you have to do monthly sip of 48,000. To retire for next 30 years. Remember this is a monthly sip. It will not increase. Every year you have to do 48k consistently. Obviously our salary will increase in years Inflation increases salary increases. Now 48,000 will seem so big But after 3-5 years You will not feel big amount. That's what I am saying. In that our step up point comes. Now you will say I don't have 48,000 to invest. It is a very big amount. From where 48,000 will come. If we are spending 50,000 Then by saving 50,000 we
can invest in retirement corpus. That is not possible. Then in that our second comes step up sip What is the meaning of step up sip? What is annual increase in our income? Can we increase sip every year? I cannot invest 48,000 now but from next year i can increase.

If you think my annual increase in income. If inflation is of 7%. With 7% income should increase If we take seven With 7% it is increasing. We considered 7% inflation. Salary is also increasing by 7%. In worst case salary is not changing. With 7% there is increase in salary. Existing investment Do you have any investment now? That you think this is my retirement income From that also it will reduce. Suppose if you have EPFO ​​corpus Suppose of 5 lakh rupees. 5 lakh rupees i inserted here. This is my EPFO ​​of 5 lakh rupees. I will use it for retirement. On that how much return I will get on EPFO? Return are 8% Then we consider we will get 8%. It is tax free means you will get 8% Suppose i have 5 lakh rupees On that i will get 8% more. Now let's do calculation again. Now since EPFO ​​arrived. From 48 it became 46. Retirement corpus remained same.

So now we have to do Sip of 46,000. We can do step up sip of 24,000. We invested 24,000 rupees this month. Every year we increase that by 7%. From annual increase in income we have to do this annual increase in sip. Today you started sip of 24,300. Next year increased 7% on that. Then again in next year increase 7% on that Compounding 7%. Increase 7% every year Till the age of 60. Then also your goal will be achieved. Then you will have 14.6 crores rupees. Considering these were our rates of returns So it is very very good. You can apply so much
permutations and combinations on this.

I have little more money than 24,000. I can do upto 35,000. Can I retire early? Then can I retire at 58? On 58 it will happen at 29,000. I have 35,000. Can I retire at 55? Now your interesting calculation will start No you need 37,000 For retirement at 55. Early retirement you can take at 37,000. If i do 37,000 per year. I invest in such investments
that give me 12% every year. 7% increase i put minimum. If you think 7% increase is less. Consider growth of salary minimum 8-10%. Why not? Consider 10%. Then in Rs 28,000 you can retire at 55. Retirement corpus also reduced. As early you retire that much less corpus you will want.

Value of money comes less. At that time its value will be more. At the age of 55 we need 11.6 crores. How much lump sum funding we need? How much monthly sip
and stepup sip we need? I considered 10% annual increase. Like this If you can do so many
permutations and combinations. You can plan yourself. When can I become financially free? I think this is very interesting calculator If you like as i am a conservative investor I am not taking 12% from whole equity. Suppose we take 9%. This we keep 10. The rate of return become 9% from 12%. Obviously both the sip's will increase. You can do calculation according to that. Which type of investor is I am? If you think here is also 9
then it will change again. These things you can do so many permutations and combinations
based on your profile. You will get so much support and understand If I invest this much money For this much time Then I can go towards a better retirement.

This is how you should work on these things. You can plan early retirement. You want to spend so much or not. 50,000 will not be sufficient. I want to increase my lifestyle. Now I am spending 50,000. But at that time I want to spend 75,000. Acc to that by using
permutation and combination What are my savings now? I can plan such investments or not. Then in those things you will get
so much help from these calculator..

Do check that on our website. If you have any comment If there are complications
then visit our website. Below is our email address and
whats app number is given. All things are written below. You can email us there
if you have any query. Below there is comment section also. Must write in comment section. Hit a like if you liked the video. If you think some knowledge is added Then hit a like Have a great time ahead friends Jai Hind.

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